More homes sliding below £1m price mark

The number of homes worth more than £1m has fallen by a third during the past two years, research showed today.

Around one in every 97 properties in Great Britain was worth at least seven figures before the housing market correction started, but now the figure has fallen to around one in every 150, according to property market website Zoopla.co.uk.

Overall, the group estimates that there are now 35 per cent fewer properties worth at least £1m than there were in November 2007, when house prices first started to fall.

The North East has been the worst hit by the downturn, suffering an 83 per cent slide in the number of million pound-plus homes in the region, followed by Wales at 56 per cent and the Midlands at 50 per cent.

Unsurprisingly, London has seen the smallest reduction in the number of properties valued at £1 million or more, with 29 per cent fewer now than two years ago, while the South East has seen a 39 per cent fall.

Eight out of 10 homes that are still worth more than £1m are in London and the South East.

Kensington in London has the highest proportion of properties worth at least seven figures, with 48 per cent of the housing stock in the area valued at this level, followed by South Kensington and Chelsea at 39 per cent and 37 per cent respectively.

Virginia Water in Surrey has the most homeowners with properties worth at least £1m outside of London at 28 per cent, well up on the national average of 0.88 per cent.

Alex Chesterman, chief executive of Zoopla.co.uk, said: "The housing market downturn has taken its toll on the exclusive property millionaires club, reducing the number of those who can claim membership from 283,168 in November 2007 to only 183,630 today.

"London remains the property millionaire capital of Britain, whilst other parts of the country have seen their property millionaire ranks decimated over the past two years, with many of the former million-pound pads sitting close to the threshold."